“Raising of ECB under the present market environment and that too from a multilateral financial institution like the IFC demonstrates the strength of PNB Housing Finance and the faith of the lending community in the sector,” added Gupta.
The Reserve Bank of India (RBI), in January this year, reduced the maturity tenor of ECBs, increased borrowing limits, and removed qualification restrictions for companies wanting to borrow funds from abroad. It effectively allows finance companies to borrow money from the overseas market for up to $750 million in a fiscal year.
“The RBI has allowed us to borrow ECB up to $750 million annually under the automatic route. Considering the strong fundamentals and inherent growth of the company, we are hopeful that in the coming months, our company will further utilise the facility,” said Gupta.
“To support the government’s vision of housing for all by 2022, our country strategy places a strong emphasis on the affordable housing sector,” said Hemalata Mahalingam, manager–financial institutions group, IFC South Asia.